Festive season sees rise in insurance policy bookings: Policybazaar analysis
- IBEF
- October 28, 2025
During the 2025 festive season, insurance policy bookings in India rose sharply as consumers increasingly viewed protection as part of their celebration plans, according to an analysis by Policybazaar. Between September 22 and October 14, 2025, insurance payments increased 14% week-on-week and 35% YoY, driven by the 0% Goods and Services Tax (GST) reform and early Navratri–Diwali spending. Unified Payments Interface (UPI) transactions surged 18%, emerging as the preferred payment mode for both renewals and new purchases, particularly in the motor and two-wheeler insurance segments, which each recorded 17% growth. Monthly premium plans also gained traction as users opted for flexible and convenient payment options.
Credit cards made a strong comeback as a festive payment choice, supported by cashback offers, reward redemptions, and easy monthly instalment (EMI) options. Term insurance payments through credit cards increased 21% in value, while the average ticket size rose 2.14%, indicating greater confidence in higher-value premium payments. Netbanking remained the preferred option for long-term or high-value policies, with term insurance transactions up 49% and investment-linked plans up 37%. Debit card usage also rose 14% post-GST, helped by bank-level cashback schemes and digital wallet integrations. Policybazaar noted that this trend reflects a “purpose-driven approach” to insurance spending, as consumers increasingly integrate financial protection into festive budgeting.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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